4 - Policy, Regulation and Legislation

How do sustainability issues link to policy?

• Create a need for government/international action

• Issues are translated into policies, laws, regulations, standards & incentives which influence how organisations…

  • Operate

  • Develop products/services

  • Manage supply chains

  • Report performance

Name 7 ways in which sustainability policy can function

1. Set minimum standards

2. Create targets (net zero, biodiversity, recycling)

3. Price environmental impacts

4. Require disclosure/reporting

5. Influence products (materials, recyclability, packaging)

6. Create incentives (subsidies/grants for sustainable alternatives)

7. Change markets (increasing market/investment for sustainable solutions)

Explain the main types & levels of law
(source, enforcement, level)

Source - where law comes from

1. Statue - Parliament

2. Common - Developed/interpreted through courts

Enforcement - how breaches/disputes are dealt with

1. Civil - Disputes between parties = compensation/fines

2. Criminal - Prosecuted by state/regulator = fines/imprisonment

Level:

1. International - Treaties/agreements

2. National - Countries translate the above into domestic legislation

3. Sub national/local - Authorities introduce additional requirements

Explain the relationship between international, national and sub-national law

• International law influences national law

• National law is supplemented/detailed by sub-national law.

Name 4 key policy instruments

1. Fiscal

2. Legislative

3. Market

4. Voluntary

Explain how Fiscal policy instruments work

Give some examples

Fiscal - Changes the price (taxes/subsidies)

• Carbon/landfill tax

• Renewable energy incentives

Explain how Legislative policy instruments work

Give some examples

Legislative - Mandatory rules/standards

• Emission limits

• Environmental permits

• Product standards

Explain how Market-based policy instruments work

Give some examples

Market-based - uses markets/pricing to influence behaviour

• Emissions trading

• deposit-return systems

Explain how Voluntary policy instruments work

Give some examples

Voluntary - Encourage going beyond law to adopt standards/commitments

• ISO 14001

• SBTs

• TNFD voluntary disclosure frameworks

Name 6 key environmental principles

1. Polluter pays

2. Precautionary

3. BAT (Best Available Techniques)

4. Hierarchy

5. Producer Responsibility

6. Lifecycle Thinking

Explain the Polluter Pays Principle

How has it been applied in policy?

Those causing pollution bear the cost

• Pollution charges

• Carbon pricing

• EPR

Explain the Precautionary Principle

How has it been applied in policy?

Lack of evidence should not prevent action if environmental harm is possible

• Chemicals/environmental risk regulation

Explain the Best Available Techniques (BAT) Principle

How has it been applied in policy?

Use effective, technically/commercially viable techniques to minimize pollution

• Industrial environmental permitting

Explain the Hierarchy Approach Principle

How has it been applied in policy?

Prioritise options from most-least environmentally preferable

• Prevent - reuse - recycle - recover - dispose

Explain the Producer Responsibility Principle

How has it been applied in policy?

Producers take responsibility for impacts/EoL

• Packaging EPR

• WEEE

• Batteries

Explain the Lifecycle Thinking Principle

How has it been applied in policy?

Consider impacts across full lifecycle

• Ecodesign

• LCA

• Product policy

Explain key environmental legislation relating to the following areas:

• Natural environment

• Air, water & land

• Energy & climate change

• Carbon pricing

• Waste & resources

• Planning & biodiversity

• Producer responsibility

Natural environment - Environment Act 2021

• Protects/improves nature, biodiversity & wider environment
  
  

Air, water & land - Environmental Permitting Regulations 2016

• Controls activities causing pollution (through permits & op conditions)
  
  

Energy & climate change - Climate Change Act 2008

• UK framework for reducing GHGs and achieving net zero
  
  

Carbon pricing - UK Emissions Trading Scheme (ETS)

• Prices emissions from sector to encourage reduction
  
  

Waste & resources - Environment Act 2021

• Improves waste management, resource efficiency & circular economy
  
  

Planning & biodiversity - Biodiversity Net Gain (BNG - England)

• Developments must deliver ≥10% BNG
  
  

Producer responsibility - Packaging EPR

• Producers contribute towards waste management costs. Encourages reductions and recylability

Explain the EU Green Deal & how it links to law

• Framework that drives EU law, but is not a law itself (umbrella policy)

• Aim = transitional EU to climate-neutral, resource efficient & competitive economy

• Drives policy action (climate, energy, industry, circular economy, biodiversity, transport, agriculture, finance)

Name 5 main regulating bodies in England and state their role

1. Environment Agency - Regulates pollution, waste, water, permits

2. Natural England - Protects nature, biodiversity, protected sites/species

3. Local Authorities - Deals with air quality, planning, environmental health issues

4. Marine Management Organisation (MMO) - Regulates marine activities/licensing

5. Office for Environmental Protection (OEP) - Scrutinizes if gov/public authorities comply with environmental law

What is the role of environmental regulators (how do they help organisations comply)?

• Issue permits & set conditions

• Monitor compliance, inspect sites, navigate incidents

• Require correction of problems

• Take enforcement actions if laws are breached

Name 5 types of penalties for non-compliance

1. Warning/notices (require action)

2. Civil sanctions (monetary)

3. Permit restrictions/revocation (restrict/stop activities)

4. Criminal prosecution

5. Wider consequences (reputation damage, operational disruption, remediation costs)

Name 9 types of stakeholders that influence environmental issues and policy development

1. Government/politicians

2. Regulators

3. Businesses/industry groups

4. NGOs/environmental groups

5. Scientists/academia

6. Communities/public

7. Investors/financial institutions

8. Consumers

9. International bodies

What is moving beyond compliance?

Compliance = meeting minimum legal requirements

Beyond compliance = voluntarily doing more than the law requires

What are 8 benefits/opportunities of beyond compliance?

1. Reduces risk - future regulation/environmental liabilities

2. Cost savings - energy/water/material efficiency

3. Innovation - products/processes/business models

4. Reputation & trust - customers/stakeholders

5. Commercial opportunities - new contracts/markets/investment

6. People - employee attraction/retention

7. Resilience - resource availability & supply chain disruption

8. Environmental/social impact - reduced pollution/emissions/resource use